SMM Brief on SHFE Copper Prices (2013-1-25)

SHANGHAI, Jan. 25 (SMM) – With LME copper holding flat overnight, SHFE 1305 copper contract started RMB 20/mt up at RMB 58,610/mt Friday. As LME copper prices rebounded to USD 8,100/mt, the contract rose all the way amid buying support, but fluctuated narrowly at highs after suffering resistance at levels around RMB 59,000/mt, with a low at merely RMB 58,600/mt. The Shanghai Composite Index struggling at 2,300 during the day gave some pressures to SHFE copper prices which slightly narrowed gains at the tail of trading. SHFE 1305 copper contract closed at RMB 58,830/mt, still up RMB 240/mt or 0.41%, with trading volumes down 14,678 lots but positions up 17,278 lots. With increasing buying support and trying to shake off pressures at recent daily moving averages, SHFE copper prices are likely to rebound for the foreseeable future.